Sales-Related Transactions Using Perpetual Inventory System The following selected transactions were completed by Amsterdam Supply Co., which sells office supplies primarily to wholesalers and occasionally to retail customers: Mar. 2. Sold merchandise on account to Equinox Co., $18,900, terms FOB destination, 1/10, n/30. The cost of the goods sold was $12,490. 3. Sold merchandise for $10,550 plus 6% sales tax to retail cash customers. The cost of the goods sold was $7,530. 4. Sold merchandise on account to Empire Co., $55,380, terms FOB shipping point, n/eom. TThe cost of the goods sold was $32,910. 5. Sold merchandise for $29,600 plus 6% sales tax to retail customers who used MasterCard. The cost of the goods sold was $18,720. 12. Received check for amount due from Equinox Co. for sale on March 2. 14. Sold merchandise to customers who used American Express cards, $14,800. The cost of the goods sold was $8,700. 16. Sold merchandise on account to Targhee Co., $28,400, terms FOB shipping point, 1/10, n/30. The cost of the goods sold was $17,340. 18. Issued credit memo for $4,700 to Targhee Co. for merchandise returned from sale on March 16. The cost of the merchandise returned was $3,080. 19. Sold merchandise on account to Vista Co., $7,700, terms FOB shipping point, 2/10, n/30. Paid $70 for freight and added it to the invoice. The cost of the goods sold was $4,600. 26. Received check for amount due from Targhee Co. for sale on March 16 less credit memo of March 18. 28. Received check for amount due from Vista Co. for sale of March 19. 31. Received check for amount due from Empire Co. for sale of March 4. 31. Paid Fleetwood Delivery Service $5,080 for merchandise delivered during March to customers under shipping terms of FOB destination. Apr. 3. Paid City Bank $850 for service fees for handling MasterCard and American Express sales during March. 15. Paid $6,937 to state sales tax division for taxes owed on sales. Required: Journalize the entries to record the transactions of Amsterdam Supply Co. For a compound transaction, if no entry is required, leave the entry box blank. Date Account Debit Credit Mar. 2-sale Accounts Receivable-Equinox Co. Sales Date Account Debit Credit Mar. 2-cost Cost of Goods Sold Inventory Date Account Debit Credit Mar. 3-sale Date Account Debit Credit Mar. 3-cost Date Account Debit Credit Mar. 4-sale Date Account Debit Credit Mar. 4-cost Date Account Debit Credit Mar. 5-sale Date Account Debit Credit Mar. 5-cost Date Account Debit Credit Mar. 12 Date Account Debit Credit Mar. 14-sale Date Account Debit Credit Mar. 14-cost Date Account Debit Credit Mar. 16-sale Date Account Debit Credit Mar. 16-cost Date Account Debit Credit Mar. 18-return Date Account Debit Credit Mar. 18-cost Date Account Debit Credit Mar. 19-sale Date Account Debit Credit Mar. 19-freight Date Account Debit Credit Mar. 19-cost Date Account Debit Credit Mar. 26 Date Account Debit Credit Mar. 28 Date Account Debit Credit Mar. 31-collection Date Account Debit Credit Mar. 31-freight Date Account Debit Credit Apr. 3 Date Account Debit Credit Apr. 15

Sales-Related Transactions Using Perpetual Inventory System The following selected transactions were completed by Amsterdam Supply Co., which sells office supplies primarily to wholesalers and occasionally to retail customers: Mar. 2. Sold merchandise on account to Equinox Co., $18,900, terms FOB destination, 1/10, n/30. The cost of the goods sold was $12,490. 3. Sold merchandise for $10,550 plus 6% sales tax to retail cash customers. The cost of the goods sold was $7,530. 4. Sold merchandise on account to Empire Co., $55,380, terms FOB shipping point, n/eom. TThe cost of the goods sold was $32,910. 5. Sold merchandise for $29,600 plus 6% sales tax to retail customers who used MasterCard. The cost of the goods sold was $18,720. 12. Received check for amount due from Equinox Co. for sale on March 2. 14. Sold merchandise to customers who used American Express cards, $14,800. The cost of the goods sold was $8,700. 16. Sold merchandise on account to Targhee Co., $28,400, terms FOB shipping point, 1/10, n/30. The cost of the goods sold was $17,340. 18. Issued credit memo for $4,700 to Targhee Co. for merchandise returned from sale on March 16. The cost of the merchandise returned was $3,080. 19. Sold merchandise on account to Vista Co., $7,700, terms FOB shipping point, 2/10, n/30. Paid $70 for freight and added it to the invoice. The cost of the goods sold was $4,600. 26. Received check for amount due from Targhee Co. for sale on March 16 less credit memo of March 18. 28. Received check for amount due from Vista Co. for sale of March 19. 31. Received check for amount due from Empire Co. for sale of March 4. 31. Paid Fleetwood Delivery Service $5,080 for merchandise delivered during March to customers under shipping terms of FOB destination. Apr. 3. Paid City Bank $850 for service fees for handling MasterCard and American Express sales during March. 15. Paid $6,937 to state sales tax division for taxes owed on sales. Required: Journalize the entries to record the transactions of Amsterdam Supply Co. For a compound transaction, if no entry is required, leave the entry box blank. Date Account Debit Credit Mar. 2-sale Accounts Receivable-Equinox Co. Sales Date Account Debit Credit Mar. 2-cost Cost of Goods Sold Inventory Date Account Debit Credit Mar. 3-sale Date Account Debit Credit Mar. 3-cost Date Account Debit Credit Mar. 4-sale Date Account Debit Credit Mar. 4-cost Date Account Debit Credit Mar. 5-sale Date Account Debit Credit Mar. 5-cost Date Account Debit Credit Mar. 12 Date Account Debit Credit Mar. 14-sale Date Account Debit Credit Mar. 14-cost Date Account Debit Credit Mar. 16-sale Date Account Debit Credit Mar. 16-cost Date Account Debit Credit Mar. 18-return Date Account Debit Credit Mar. 18-cost Date Account Debit Credit Mar. 19-sale Date Account Debit Credit Mar. 19-freight Date Account Debit Credit Mar. 19-cost Date Account Debit Credit Mar. 26 Date Account Debit Credit Mar. 28 Date Account Debit Credit Mar. 31-collection Date Account Debit Credit Mar. 31-freight Date Account Debit Credit Apr. 3 Date Account Debit Credit Apr. 15

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

Sales-Related Transactions Using Perpetual Inventory System

The following selected transactions were completed by Amsterdam Supply Co., which sells office supplies primarily to wholesalers and occasionally to retail customers:

Mar. 2.	Sold merchandise on account to Equinox Co., $18,900, terms FOB destination, 1/10, n/30. The cost of the goods sold was $12,490.
3.	Sold merchandise for $10,550 plus 6% sales tax to retail cash customers. The cost of the goods sold was $7,530.
4.	Sold merchandise on account to Empire Co., $55,380, terms FOB shipping point, n/eom. TThe cost of the goods sold was $32,910.
5.	Sold merchandise for $29,600 plus 6% sales tax to retail customers who used MasterCard. The cost of the goods sold was $18,720.
12.	Received check for amount due from Equinox Co. for sale on March 2.
14.	Sold merchandise to customers who used American Express cards, $14,800. The cost of the goods sold was $8,700.
16.	Sold merchandise on account to Targhee Co., $28,400, terms FOB shipping point, 1/10, n/30. The cost of the goods sold was $17,340.
18.	Issued credit memo for $4,700 to Targhee Co. for merchandise returned from sale on March 16. The cost of the merchandise returned was $3,080.
19.	Sold merchandise on account to Vista Co., $7,700, terms FOB shipping point, 2/10, n/30. Paid $70 for freight and added it to the invoice. The cost of the goods sold was $4,600.
26.	Received check for amount due from Targhee Co. for sale on March 16 less credit memo of March 18.
28.	Received check for amount due from Vista Co. for sale of March 19.
31.	Received check for amount due from Empire Co. for sale of March 4.
31.	Paid Fleetwood Delivery Service $5,080 for merchandise delivered during March to customers under shipping terms of FOB destination.
Apr. 3.	Paid City Bank $850 for service fees for handling MasterCard and American Express sales during March.
15.	Paid $6,937 to state sales tax division for taxes owed on sales.

Required:

Journalize the entries to record the transactions of Amsterdam Supply Co. For a compound transaction, if no entry is required, leave the entry box blank.

Date	Account	Debit	Credit
Mar. 2-sale	Accounts Receivable-Equinox Co.
	Sales

Date	Account	Debit	Credit
Mar. 2-cost	Cost of Goods Sold
	Inventory

Date	Account	Debit	Credit
Mar. 3-sale

Date	Account	Debit	Credit
Mar. 3-cost

Date	Account	Debit	Credit
Mar. 4-sale

Date	Account	Debit	Credit
Mar. 4-cost

Date	Account	Debit	Credit
Mar. 5-sale

Date	Account	Debit	Credit
Mar. 5-cost

Date	Account	Debit	Credit
Mar. 12

Date	Account	Debit	Credit
Mar. 14-sale

Date	Account	Debit	Credit
Mar. 14-cost

Date	Account	Debit	Credit
Mar. 16-sale

Date	Account	Debit	Credit
Mar. 16-cost

Date	Account	Debit	Credit
Mar. 18-return

Date	Account	Debit	Credit
Mar. 18-cost

Date	Account	Debit	Credit
Mar. 19-sale

Date	Account	Debit	Credit
Mar. 19-freight

Date	Account	Debit	Credit
Mar. 19-cost

Date	Account	Debit	Credit
Mar. 26

Date	Account	Debit	Credit
Mar. 28

Date	Account	Debit	Credit
Mar. 31-collection

Date	Account	Debit	Credit
Mar. 31-freight

Date	Account	Debit	Credit
Apr. 3

Date	Account	Debit	Credit
Apr. 15

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